Good morning, ladies and gentlemen. Welcome to the Q1 FY24 earnings conference call of Glenmark Pharmaceuticals Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Utkarsh Gandhi, General Manager, Investor Relations for Glenmark Pharmaceuticals. Thank you, and over to you, sir. Thank you, Lillian. Good morning, everyone, and welcome to the Q1 FY24 earnings conference call of Glenmark Pharmaceuticals Limited. Let us review the overall performance of the company for the first quarter of FY24. Glenmark's consolidated revenue from operations for the first quarter of FY24 was at INR 24,106 million, as against INR 27,773 million in the corresponding quarter last year, recording an overall year-on-year growth of 22.5%. We'll review each of the businesses of Glenmark Pharmaceuticals Limited, starting off with India. Sales from the formulation business in India for Q1 FY24 were at INR 10,643 million, as against INR 10,352 million in Q1 of FY23, which means recording the YOY growth of 2.8%. The lower growth was mainly on account of the full impact of divestment of few non-core brands last year, as well as some impact of the NLEM price revisions. The India business contribution was at 21.3% in Q1 FY24, compared to 37% in Q1 last year. Glenmark's India business continued to significantly outperform industry growth rates. As per IQVIA Q1 FY24 data, Glenmark's India formulation business recorded a growth of 10.7% compared to in-industry growth rate of 8.1%. Furthermore, as per the IQVIA MAT June data, Glenmark's India business grew by 13.1% compared to an industry growth of 10.3%. Glenmark's India business continues to be ranked 14th, with a market share of 2.12%. The company also continues to have nine brands in the IPM top 300 brands in the country, as per IQVIA MAT June data. In Q1, MAT June 2023, contribution from the chronic therapeutic segments for Glenmark was at 37% and 35%, respectively. In terms of key therapeutic segments, Glenmark is ranked second in both respiratory and dermatology segments. In addition, Glenmark is ranked fifth in the cardiac segment and seventeenth in the diabetic segment. During this quarter, Glenmark India business also considerably improved its market share in these key therapeutic areas. As per IQVIA MAT June data, the dermatology market share increased to 7.40%. The Glenmark share in the respiratory market increased to 5.65%, while Glenmark share in the cardiac market increased to 5.2%. Glenmark's share in the diabetes market was at 2.1%. These market share gains have been led by higher than industry growth rates for Glenmark across most of the core therapeutic segments. Glenmark is expecting business growth to remain stable in spite of a recent slowdown in certain acute segments of the industry, such as respiratory and anti-infectives. The company has launched multiple line extensions during the quarter and continues to gain market share in some of the key launches across the core therapeutic segments. The company continues to have a healthy pipeline of differentiated products, which it will launch in the market going forward. The consumer care business in India, primary sales for the Glenmark's consumer care business in Q1 FY24 was INR 781 million, with a growth of 21.3%, which was mirrored by a strong double-digit secondary growth of 17%. The company's flagship brand, Candid Powder, delivered revenue growth of 29% in Q1. La Shield portfolio delivered 2% growth in Q1, which was low primarily due to a high base last year, and the Scalpe portfolio recorded growth of 58% in the first quarter of FY24. Moving on to North America. The North America business registered revenue of INR 8,085 million, which is about $98.4 million, for Q1 FY24, as against INR 6,628 million, which is about $86.1 million, for Q1 FY23, which translates into a year-on-year growth rate of 22%. The North America business contribution was at 23.8%, compared to 23.9% in Q1 last year. In Q1, Glenmark launched Clindamycin Hydrochloride Capsules, which was approved in the previous quarter. Additionally, Glenmark filed 2 ANDAs in Q1 FY24. The company plans to file 2-3 applications in the forthcoming quarter and a total of 10-12 ANDAs in FY24. Glenmark's marketing portfolio consists of 183 generic products, which are authorized for distribution in the US market, and the company has 50 applications pending at various stages of the approval process. Europe business. Glenmark's Europe operations for Q1 FY24 were at INR 5,732 million, as against INR 2,300 million in Q1 last year, recording a year-on-year growth of 73.7%. The Europe business contributed 16.9% to the total revenues in the first quarter of FY24. The strong growth in the region was driven by an uptick in the base business as well as new product launches during the first quarter. The Western European business recorded high double-digit growth for Q1, with markets like the UK and Spain growing significantly. Among the key markets, the U.K. recorded strong growth on the back of key launches, particularly in the Gx business, and key markets in Central and Eastern Europe, such as Czech and Poland, also recorded strong secondary sales growth. Glenmark's respiratory portfolio in Europe has also been a key factor for the strong performance in Q1. The company has seen a strong uptake across all 4, respiratory brands that it has launched, particularly, brands like Ryaltris and CytoTec. Ryaltris continues to exhibit strong growth across markets in which both Glenmark and partner Menarini have launched the product, and Salmex and Asmalex also continue to sustain its market share across a few markets, both in terms of value and volume. In addition, the company mentioned in the last earnings call that it has signed four additional respiratory products for the new markets, and which would be launched over the next 2-3 years. Glenmark has also entered the Italian market and will be expanding across the country in the forthcoming quarters. ROW region, which consists of Asia, Middle East, Africa, Russia, CIS and Latin America. For the first quarter of FY24, revenue from the ROW region was INR 5,510 million, as against INR 4,326 million for Q1 last year, recording a year-on-year growth of 30.4%. For Q1 FY24, the ROW business contribution was at 16.2%, compared to 15.2% last year. The company witnessed healthy growth in the base business across all sub-regions of the ROW market, starting off with Russia. As per IQVIA YTD, June and MAT June data, Glenmark's Russia business recorded growth of 34% and 17% respectively in value. This has been driven by all key brands, including Ryaltris, Ascoril, and Montelukast. Amongst the dermatology companies, Glenmark ranks tenth as per MAT June 2023 data, and amongst the companies present in the expectorants market in Russia, Glenmark continues to maintain its strong second rank as per the MAT June data. In June, Glenmark also launched Ascoril NS, which is a combination to further consolidate its leadership position in the expectorants market. The Asia region recorded 14% secondary sales growth, which was driven by markets like Philippines and Vietnam. Dermatology and respiratory are the key therapeutic areas in which Glenmark is present in Asia and contribute significantly to the overall sales. In addition, Ryaltris was launched by Glenmark in the Malaysian market in Q1 FY24, meeting with demand so far post-launch. Ryaltris continues to hold 18%+ value market share in Australia across the top allergic rhinitis products. The product has also received strong response in South Korea post-launch in Q3 of last year by partner Zion Corporation. Middle East, Africa region recorded 10%+ growth in sales during the first quarter. Glenmark continues to be ranked third in the overall EMEA market. Further, the company continues to achieve strong secondary sales growth in South Africa, UAE. Ryaltris again was a key product. It was launched in Saudi Arabia in Q1 and is expected to drive further growth in the respiratory segment, as the product will get launched across other EMEA markets in FY24. Latin America region recorded strong growth in Q1. Respiratory portfolio was a key contributor for Glenmark in the Latin American markets. The Brazil business for Glenmark achieved 25%+ growth in its covered market. The company maintains its rank amongst the top companies in the covered market for chronic respiratory segment in Brazil, as per IQVIA MAT June data. Secondary sales there also remain strong in Glenmark's other key market, which is Mexico. Glenmark's business in Mexico grew by 25% in value and 15% in units, as per IQVIA MAT June data. We'll cover some key highlights for Ryaltris. As of the end of Q1 FY24, marketing applications for Ryaltris have been submitted in more than 70 countries across the world. The product has been commercialized in 29 markets, including major markets like the U.S., Canada, markets in Europe, like the U.K., Australia, Russia, South Africa, South Korea, and Saudi Arabia. Menarini, Glenmark's partner in the EU, intends to launch the product in additional European markets in FY24 and consolidate its position in the markets where the product has already been launched. In addition, as we mentioned, Glenmark's, the markets in which Glenmark is selling, we continue to be one in Ryaltris in Europe. Hikma, Glenmark's commercial partner in the U.S., continues to see strong prescription, new prescription and repeat prescription growth as the allergy season progresses through the country. Grand Pharmaceutical, China's Glenmark's partner in mainland China, they aim to complete the ongoing Phase III study in the country and submit the marketing authorization application in the second half of FY24. We've mentioned some key market shares for Ryaltris, value market shares across a few markets where Glenmark and their partners have already launched Ryaltris. Australia, we have 18+% market share; South Africa, 15%; Czech Republic, 25%; Poland, 8%; and Italy, 10%. In terms of other key respiratory products, clinical trial is ongoing for the Flovent pMDI filing, and we expect to file the product in FY24. As mentioned before, we plan to file at least one more generic respiratory pMDI in the US in FY24, and then continue our momentum beyond that. Covering some highlights on Glenmark's innovative R&D pipeline, starting off with GRC 54276. GRC 54276 is a novel HPK1 inhibitor being developed as an orally administered immunotherapy agent for patients with solid tumors. GRC 54276 is currently being evaluated in a first-in-human study, phase 1 clinical study. Part 1A monotherapy phase of this study is ongoing in India since July 2023, and no dose-limiting toxicities have been observed so far. Based on the phase 1 IND approvals, which were received from DCGI as well as the U.S. FDA in Q4 FY23, the phase 1, Part 1B combination study of GRC 54276 with pembrolizumab and atezolizumab was initiated in India in the first quarter of FY24, and initiation of the study in the U.S. is planned in the second quarter of FY24. GRC 39815. GRC 39815 is a RORgammaT inhibitor, and company's respiratory pipeline asset being developed as an inhaled therapy for mild to moderate COPD. It is currently in phase 1 development. Moving on to Glenmark Life Sciences, revenue from operations, including captive sales, were INR 5,785 million, as against INR 4,899 million for Glenmark Life Sciences, recording a YOY growth of 18.1%. Generic API revenues for GLS in Q1 increased by 13.3%, and the business also witnessed strong growth in the CDMO revenues. Detailed engineering work has also started in the new manufacturing site for GLS in Solapur. External sales for GLS in Q1 of FY24 were at INR 3,769 million, as against INR 3,251 million, recording a growth of 16%. Sorry. Moving on to Ichnos Sciences, Glenmark has invested INR 1,417 million, which is about $17.2 million, in the first quarter of FY24, compared to, sorry, compared to INR 1,682 million, which is $21.8 million in Q1 last year, and INR 1,906 million, which is $24 million in Q4 of FY23. For further updates on the pipeline of Ichnos, please log on to their website. The pipeline update for the first quarter has been uploaded. We want to reiterate our key objectives for FY24, which we stated earlier: consolidated revenue growth of 10%-11%, consolidated R&D investment of 8%-8.5%, consolidated EBITDA margin of 19%-20%+, consolidated CapEx of INR 600-700 crore, and we prioritize free cash generation as well as closing of 1 or 2 CDMO. Before we open the call for Q&A, just want to highlight some notes to the results. EBITDA for the first quarter of FY24 was INR 631.2 crore, with an EBITDA margin of 18.6%. Forex loss for the quarter was at INR 16 crore, which is recorded in other expenses. Excluding this, EBITDA margin for Q1 was at 19%. Total R&D expenditure in Q1 FY24 was around INR 284 crore, which is 8.3% of revenue for the first quarter. As mentioned before, Ichnos investment in Q1 was at $17.2 million. Inventory for the period ended June 30th was at INR 3,319.8 crore, as against INR 2,977.8 crore as of March. Receivables as of June 30th, 2023, was at INR 4,183.7 crore, as against INR 4,098.6 crore as of March. Payables as of June thirtieth was at INR 2,508.1 crore, as of rupees, as compared to INR 2,391.9 crore as of March. Total asset addition in the quarter was at INR 127.5 crore, of which tangible asset addition was about, INR 108 crore and intangible addition was about INR 90.5 crore. Gross debt for the period ended June thirtieth, 2023, was at INR 4,433 crore, as against INR 4,338 crore in March. Net debt for the period ended June thirtieth was at INR 2,947 crore, as against INR 2,905 crore in March. Sorry. I would like to introduce the management of Glenmark Pharmaceuticals on the call today. We have with us Mr. Glenn Saldanha, Chairman and Managing Director; Mr. V.S. Mani, Executive Director and Global Chief Financial Officer; and Mr. Brendan O'Grady, the Chief Executive Officer of Global Formulation Business. With that, we'd like to open the floor up for Q&A. Over to you, Lizanne. Thank you. Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone wishing to ask a question, may please press star and 1 on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.... Participant, if you wish to ask a question, you may please press star and 1. The first question is from the line of Damayanti Kerai from HSBC Securities. Please go ahead. Hi, good morning. Thank you for the opportunity. My first question is, you have booked exceptional items for the remediation costs related to India and Monroe sites. With it, are you broadly done with the cost which you'll be incurring for remediation or you expect substantial costs to come in ahead also? Good morning, Damayanti. I think, we are broadly done with most of the remediation cost. Going forward, what we expect as of now, is very minimal cost, actually, not very significant. Both, US and India sites. What will be timeline for, say, completion of remediation work in both the sites? I think, Damayanti, little bit of remediation will continue, right? But from a cost perspective, it will not reflect in the numbers. Okay. cost broadly done, and, maybe, once you complete, then, you can ask the FDA to come and re-inspect the plant. That's correct. Okay. My second question is, can you update on your take sale for the Glenmark Life Sciences business, which is obviously, which will be coming in, coming to you? Any timeline for it? Right now, all we can say is, you know, we have a 78% sell-down required by law, right? We are working on it, right. I think, there is a deadline of- Yeah, the timeline. Yeah, we can do it in next August, because we did in August of 2021, so three-year timeframe is there. We have time till next August. Till August 2024, you have this, 78% sell-down. Yes. Okay. My last question is on your spend on Ichnos, which is down to $17 million for the quarter. Is this a new spend base which you are looking for this business or, like, it came down from $21 million-$22 million earlier? How should we look at spend for Ichnos in coming quarters? And if you can also update on some of the key pipeline assets for Ichnos, where we are expecting data readout, et cetera? Okay, I'll take the first part of the question, Damayanti. As far as the spend base is concerned, this is a new, basically a territory in which we are working. As we have guided even during our investor call, that we are pruning down our spend from to about $60 million or so in a year. Broadly, this is where we will spend on a quarterly basis. Come to the pipeline, you know, as we said, right, there are 3 active oncology programs which are underway, right? ISB 1342, ISB 1442, and ISB 2001. We think all of them will read out or will reach some inflection point this year, right, in terms of possible POC for ISB 1342 and ISB 1442, and, and some evidence on ISB 2001, this year. I think this year is a critical year in terms of the oncology portfolio of Ichnos Sciences. I think in parallel, as you know, Almirall continues to progress well on ISB 880 in their phase I clinical trial. On ISB 830, we are actively in discussions for potential partnerships on the portfolio. I think these are the five assets in Ichnos, which are of relevance, which I think this year is an important year for Ichnos. Okay. For any partnering, et cetera, most likely we will first, release data, right? Any data readout, and then, there is more likelihood of getting into any partnerships. Not necessary, actually. ISB 830, we've already, you know, phase II data or phase IIb data is already out in the public domain. On the oncology assets, you know, we have a bunch of presentations at ASH, for both ISB 1342 and ISB 1442 this year. We have at least 3 different poster presentations at ASH. We constantly keep releasing data at medical conferences. Some of that is in the public domain. Okay. Thank you, Glenn. I will get back in the queue. Thank you. Thank you. The next question is from the line of Shyam Srinivasan from Goldman Sachs. Please go ahead. Yeah, good morning, and thank you for taking my question. Just the first one on the run rate for the North America business, right? We saw, like, sequential improvement in fourth quarter, but again, quarter one, it's come off. Is this a seasonality-linked issue here? Or, how should we look at the growth going forward? Your comments on the pricing environment there as well. Thank you. Hi, Shyam, this is Brendan. thank you for your question. I think, you know, if you look at the North American business, typically, Q3 and Q4 are stronger quarters than quarter one and quarter two. As we've said in the past, we see the U.S. is basically around a $100 million business a quarter, give or take. A lot of that depends on, on new product launches. you know, again, quarter one, we had some launches that slid out a little bit later into the year, so that's the reason that it was slightly under 100. In general, we see, you know, good sustained growth in the U.S. in the mid-single digits, as we've said before. I think, you know, as we go through the year, you'll see, the numbers come up closer to 100, and in some quarters be over 100, some quarters maybe be, a little under 100. Overall, continued good growth in the U.S. as we, as we launch some new products this year. Sure. Just the pricing environment? I'm sorry, what was that? The pricing, US generic pricing environment, how does it look for you on your base business? Yeah, I mean, I think the U.S. pricing is, environment is, we're generally in line with the market. You, you know, right now, it's, it's a mid-single digits as far as price erosion. It can change a little bit depending upon your portfolio and the products you launch, but we're relatively in line with the market. Got it. Helpful. Just a second question on, on the India business. Is the like-for-like growth, like indicated in the press, is, is that 13%? How should we look at the India business growth and maybe outlook for the remainder of the year? I think we'll see the India business growth in the single digits for the rest of the year. I mean, I think we have a good, solid business across India. As you know, we're ranked 2 in, in respiratory, and 5 in, in cardiovascular. We'll see continued good growth in the India business, but I would put it in the single digits. Also, Shyam, if you, for Q1, right, if you correct for some of the divestments and all that, that we did. Mm-hmm. it's about 8% growth. 8% growth? Yeah. Yeah. Glenn, just, just, on the outlook, and, you know, we did by much better growth. I know it's on a low base of last year, but, reasons to just hold on to our guidance rather than change or upgrade our guidance, anything that's stopping us? Look, the business overall continues to do exceedingly well, right, across all the geographies. I mean, India, as Brendan mentioned, we are looking at a single-digit this year. Because we are witnessing some slowdown, particularly in the acute segment. Glenmark has some big brands in acute. Outside of India, I mean, I think Europe is clearly doing exceedingly well for us, right. The world markets are doing well. The US, you know, we will, we'll definitely do our guidance for the US. Mid-single-digit could be ahead of that also. I think all in all, the business is doing well, and given where we see things, we should be able to meet our guidance or even exceed our guidance this year. Got it. Thank you, and all the best. Thanks. Thank you. The next question is from the line of Saion Mukherjee from Nomura. Please go ahead. Yeah, hi, morning. Thanks for taking my question. Just on India, you mentioned 8% growth. This is excluding the divestment and M&As, or is it just- Yeah The impact of divestment? Yeah, sorry. No, Saion, excluding both divestment as well as M&A, the growth was 8%. And then, you know, we are seeing. Are you seeing any headwinds in the sector in India? You know, the volume growth are quite low, and we are sort of hearing about the policy moves to ask doctors to prescribe, you know, using generic names. We are seeing companies getting into trade generics. Are you seeing these headwinds building up for the industry, which is bringing down the volume growth? For this 8% growth that you mentioned, if you can break it down between the volume and price increases. So I think, Saion, you know, on the policy side, it's all very new, right? It's just come out a few days ago. We're still trying to understand what are the implications of that. Outside of that, I think, you know, the sector in India will continue to do well, right? I mean, just given the, the growth that we're witnessing across the board, between branded products, generics, OTC, as a platform institution. I think there is enough of opportunity for companies to take advantage of the India platform, right? If they're able to, to look deep for the growth. I think so all in all, you know, India should continue to do well, but there could be some ups and downs here and there, right? I mean, like we are facing some short-term seasonality issues, right, in the acute segment. Those kind of things will keep happening, but I think on a ongoing basis, right, India should be a solid business, right, in the years to come. Right. Glenn, for Glenmark, what's the kind of, you know, initiatives you are taking in India, to sort of help grow ahead of the market? I'm just thinking from an OTC perspective or, let's say, trade generics, which many of the companies have entered. If you can throw some light, why would sort of Glenmark be able to grow ahead of the ahead of the market? Look, I mean, we've, you know, we've had a stellar India business, Saion, over the last decade, right? We've consistently grown. We've had great brands. We've always been among the fastest 2, 3 players in terms of growth. It's been a, it's been a great build out, right? I think from here on, from an opportunity set, there are multiple areas which could drive our India growth, right? We have a good OTC platform that we launched, you know, maybe about 5, 7 years ago. And some of the brands, you know, whether it's Candid Powder, Scalpe, La Shield, right, continue to do exceedingly well, right? We-- I think I'm pretty optimistic that the OTC platform will do well. We have a small Gx business, which is very insignificant. I think overall, for Glenmark, you know, our franchises in dermatology, we rank number one, number two. Respiratory, we are now number two. Very strong franchises, right? Cardiovascular, you know, with brands like Telma, we are among, we rank number four. Diabetes is an area which continues to be challenging, but I think across all the therapeutic areas that we operate in, we have built a strong franchise. India remains a strong business for us, and will continue to do well. That's the only visibility I can give you at this point, Saion. Okay, sure. No problem. Also on, on the, the US market, you know, if you can, give some color on, let's say, how many launches we should expect, or what kind of you know, what's the number of filings and launches? Any, any key product that you want, you can call out, you know, which can sort of, have a material impact, or you think we should sort of, you know, remain at around $100 million mark of quarter, more or less, for, for some time now. How should we sort of think about it? Well, I think if you, you know, think about the U.S. market, in addition to the comments that I said, we'll continue to launch new products as we go through the year. Probably in the range of 8-10 new products. We've already launched clindamycin in the first quarter. We're in the middle of the ceftriaxone launch right now. We've just, we've just started shipping, so I think we're 1 of 3 or 4 on the market right now. You know, we'll see how that launch turns out. We have a couple others this quarter that we'll launch. As far as filings, we'll file, you know, 8, 10 products this year. You know, like I said, I think, you know, continued build-up of the U.S. market, we should see a growth in, in mid-single digits. I think, you know, price erosion has, has come off a little bit and has stabilized in the mid-single-digit range. So, you know, I'm optimistic that we'll continue to see the US business grow. As Glenn said, I think we'll see those values in our, in our numbers for the US market this year. I think, I think also to add to what Brendan just said, Saion, I think the key is, you know, for us, it's important to get past Monroe, so we get those injectable products, which will further accelerate the growth in the U.S., right? If you go back to our investor deck, right, we clearly mentioned three, four areas where we are heavily focused. One of them is respiratory, the other is injectables and complex injectables. So these are some of the areas where we see some good opportunities, which we continue to, to strive forward. More near, near term, I think, you know, we're doing some good things. We'll see some, some exciting launches coming through in this quarter and probably next quarter, which will help fuel the growth for the U.S. in near term. If I look out longer term, it's all about some of these pipeline products in respiratory, complex injectables and other areas, right, that we're continuing to work on. A critical event for us obviously is to get past Monroe and get that going, right? That's how we go into this year. Exactly. Okay. Okay. one last question on Ryaltris. You know, you have mentioned market share data in various markets. Is it possible to share what in your estimate would be the sort of in-market sales, you know, Ryaltris, if you add up all the markets where you have currently launched the product? That's a tough one, Saion. We don't have the, the, the in-market sales across all markets. I think, you know, we, we guided to $40 million-$45 million for the year. We are clearly well ahead of that on Ryaltris sales for this year, right? I think given the fact that, you know, this is still in the launch phase, right, this could be a very big product for us. I mean, we still haven't launched the product in major markets, like Brazil, Mexico, China. Some of the major European markets are yet to launch the product, right? In the other markets, it's still in the early phases of launch. It's a, it's a good launch for us. That will be a big driver for us, both in terms of contributions across both margins as well as, top line growth in, across the board. That's a, that's a good build-out for us. Okay, just one clarification, Glenn. This $40 million-$45 million for FY24, this is revenues to Glenmark, or you're mentioning in-market sales expected? This is revenues to Glenmark. Oh, okay. It would have been how much last year, in FY22? INR 20 million, maybe. Oh, okay. Okay, this year, this is what I think you've guided would sort of go to $150 million over time, right? That's correct. That's correct. Okay. Okay. Thank you. Thank you. Thank you. The next question is from the line of Nitin Agarwal from DAM Capital. Please go ahead. Hi. Thanks for taking my question. Glenn, on, on the European business, we've seen very dramatic sharp growth in the last few quarters. I mean, if you can just highlight what is really working, and how should we look at now Europe from, from this base to, you know, when you look to the next two, three years? Clearly, Nitin, Europe will be a big driver for us, right? I mean, we've done very well. We still see, you know, at least a 25%-30% growth coming on a full year basis out of Europe, so it'll almost be a $300 million business for us this year. That's pretty substantial, given the fact that our U.S. business is about $400 million, $450 million, $420 million, and we've taken so long to build it out. It's a, it's a great build out for us. I think Europe, on a sustained basis, given all the different things that we are working on, right, will continue to grow 15%, you know, around 15%-20%, right, on a sustained basis going forward. That's the kind of build out that we are working on. Then on the profitability front, how different is it from, our corporate profitability right now? Obviously, the margin profile has improved dramatically, right? As we're gaining more scale, right, it continues to improve. Mani. Yeah, but still, you know, nothing to the point. It is a little lower than the overall profitability, but it's much, much better. Also, with the kind of products that we have launched and Ryaltris, all that, all that should take the margin. At a point, over a period of time, as the business, at what scale does it start to become, you know, in line with the corporate profitability? Does it get there actually in the first place? See, obviously, there are some markets which are clear outliers, like India, et cetera, which are way ahead of all others. To be fair, these businesses, as they grow higher and higher and the benefit of margin comes in, it comes as close to it as possible. Yes. It's grown substantially, okay? It used to be single digits at one time. It's well, very well, much higher than that. Then on the working capital front, sir, what, how, how are we seeing Q1, and how do we see the remaining part of the year? Any pressure easing on receivables and, and inventory? Yeah, I'll, I'll brief you. like discussed, what are the numbers? If you look at inventory, it's more or less a number of... because, because the business grew 20%, and we're seeing a good year this year. If you look at the number of days, inventory, which was, like, more or less there, it's 84, between 85 days. Receivable in the last year, March, it was 115 days, it's come down to 107. broadly, I see, you know, while, overall inventory went up by about 10%-12%, also you have to factor in the fact that we're looking at a big, good growth in many of the businesses. I think all in all, the number of days of working capital, which was about 132 last year, and is 120, I think it improved as it goes along, only, the ship activity. Do you have any numbers that you're probably aspiring to get towards by the end of the year? I'm hoping it will come to lower, I mean, it will come to closer to 120 or so, which is where we were at some time back. Okay. Okay, thank you. Thank you. The next question is from the line of Kunal Randeria from Nuvama. Please go ahead. Hi, yeah, good morning. I just want to get your thoughts around this ISB 830. This is the most advanced product in your Ichnos pipeline, phase 2b, yet it is not partnered. This is, can you run it partner-ended? I think, I mean, we put out our phase 2b data, right? You know, with some of the recent activity on the OX40 antagonists, right, which has recently come in the, in the global environment, has brought about renewed excitement around ISB 830. We are hoping that we will be able to partner this asset at some point. Yeah. Is this maybe one of the candidates that you are looking to partner this year? Is that the one that you're partnering your items? I mean, I'm not giving any specifics, right? I mean, we have partnering discussions across the various assets, right? Between GRC 54276, under the GPL side, the oncology assets and Ichnos and ISB 830, right? We have multiple discussions on this. It's hard to predict what will clear out. Okay. Okay, secondly, on Flovent, you maintained that you'll be filing it this year. Can you run us through what the competitive scenario could be? I believe there's an AG in the market, but what's the kind of competition you expect, you know, maybe by the time you launch it in late next year? We believe there's 1 other filer right now, right, on Flovent. Other than that, we, we have no visibility to any additional filings. Keep in mind, this is a large development, okay? I mean, we're talking of, you know, clinical trials, which runs into thousands and thousands of patients, right? It's not an easy development. We are hoping this will be a limited competition launch for us. Okay. Just one more, if I can. In this quarter ending, was there any benefit from a better-than-expected season, or was it a normal quarter, or? I think it was a normal quarter overall. Okay, got it. Thank you. Bye-bye. Thank you. The next question is from the line of Sameer Deshpande from Fairdeal Investments. Please go ahead. Hello, good morning, everyone. The quarter was very good for us in terms of the financial performance. I would like to know, last quarter, we had a big settlement of around INR 800 crore, which was provided. What is the timeline for the payment of that, during the year? Sameer, this will be paid over two years, I think. Broadly, we had a $37.5 million settlement. This will be paid over the next, current year and next year. That will add to our debt, which is currently at around INR 3,000 crore net. Will you offset it by selling this Glenmark Life Sciences stake? I think our internal generation of cash over the current year should also help us take care. Therefore, we should be able to broadly take care of it from our internal funds, sir. Is there any target to reduce the gross and net debt for the current year? Absolutely. I mean, as we said, one of our key things, endeavor, is to bring it down. Obviously, two years back, we brought it down substantially, but over the last two years, because of currency, et cetera, those are the reasons why it went up. I'm hoping that this money will definitely get paid off by our internal generation of funds. As our business continues to grow and do better, we should definitely see the debt also come down. Currently, if you see the quarterly interest on rate, it has gone up substantially and it has almost doubled, if you take it by year-on-year, so INR 112 crore versus INR 60 crore. Right. Can respond to that. Last 2-3 quarters, you see it's gone up, because as you can see, LIBOR, which was one year by 0.5%, today is 5.5, okay? Obviously, if you have USD denominated, it has gone up. Yeah, that's the reason. It's nothing to do with the quantum of that. It has got to do more to do with the interest rate scenario that changed dramatically over the last one year. Yes, yes. There is no plan to sell a big stake in Glenmark Life Sciences to clear off the debt? No, I think what we explained earlier also, that we would have-- we have to do 7%-8%, we'll do that. As far as the debt is concerned, I think, you know, with our EBITDA being where it is and overall business being better, we are hopeful that we should be able to take care of it. Actually, the perception of the market always continues to be better for the companies which are having very low debt or having cash. In our case, we have managed the debt well. There is no issue on that front. If a pharmaceutical company or any, we are in a position to reduce our debt because we have good cash. We are working towards that. Leave it to us. We'll do that. Okay. Thank you, and all the best. Thank you. The next question is from the line of Sarath Ratnakumar from Eila Consulting Private Limited. Please go ahead. Hi, good morning. My first question was again regarding the big sale in Glenmark Life Sciences. You know, can you address in terms of twofold, 1, the cash flow requirement, as the previous participant asked, and 2, you know, can you give some comfort to the minority shareholders in terms of what percentage we're looking to sell? Because, you know, it looks like Glenlife is, you know, a very good cash generation company at the moment, right? Sarath, I'll respond to that. Basically, as for now, we have to bring it down to, we have to bring it down by to public shareholding overall, that is to 25%. That is a 7%-8%. That's what we are working on today, okay? As far as the cash flow requirements are there, we are broadly managing everything. We're generating enough funds, business is doing well, so I think that will take care of it. Okay, thank you. I think in the previous quarter call, we've mentioned that we've spent about INR 200+ crore in consultancy charges for the remediation. Despite that, we've received a warning letter from USFDA. Can you throw some light on what possibly went wrong? Is it the choice of consultant, that we were not able to meet the requirements of the consultant sufficiently? What went wrong there? I think, what will be helpful now, probably you need to understand it a little better, you know, how it works, okay? Obviously, the USFDA had come, and they give us observations, et cetera, and they work with us. Obviously, we have to start working on the remediation cost. I mean, on the remediation, and that will cost money, okay? As far as, they take their time in giving the letter. It's not that they, in spite of doing this, there is a warning letter. The warning letter happens because of the earlier this, which is we have done the remediation, and that is why now they help us to get back in business, okay? That's what I'm saying, in from that plant. No, so we are saying that we are going to probably continue a little bit more of the remediation without incurring, any major cost. Minimal cost, that's what we said, minimal cost, yeah. Because obviously, it will have its, while we are done, they are doing work, a lot of it is already done, we are hoping. This is across the pharma industry, okay? There are other, peers also who spend similar money whenever they have any kind of this, okay? This is the way it is. Okay, all right. Thank you for that input. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Utkarsh Gandhi for his closing comments. Thanks, Leanne. We just read the disclaimer before we end the call. This document has been prepared by Glenmark Pharmaceuticals Limited, the information, statements, and analyses made in this document and during the call describing company or its affiliates, objectives, projections, and estimates are forward-looking statements. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from these statements, depending upon economic conditions, government policies, and other factors. No representation or warranty, either expressed or implied, is provided in relation to this document, this document should not be regarded by recipients as a substitute for the exercise of their judgment. The company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. With this, we can end the call. Thank you all for joining us today. Thank you, members of the management team. Ladies and gentlemen, on behalf of Glenmark Pharmaceuticals Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.